Use a salary verification letter to confirm the income of an employee.
Updated July 9, 2023
Written by Yassin Qanbar | Reviewed by Brooke Davis
Whenever someone attempts to buy a new car or home or make any other large purchase, it’s not uncommon for them to be required to verify their income and employment status. When a bank approves a personal loan, they’ll need more than polite assurances to confirm that someone makes X dollars annually.
That’s where a salary verification letter comes into play. It’s a document created by someone’s current or future employer for several reasons.
Also commonly referred to as an employment verification letter, a salary verification letter is a document that confirms an employee’s income. If an employee needs to verify their income for a loan, a bank isn’t just going to take their word that they make what they claim.
Putting that information in writing through a salary verification letter helps confirm those details.
Generally speaking, a salary verification letter is used for purposes like:
You’ll want to include several vital sections for a salary verification letter.
First, you’ll want to ensure that all contact information for both parties is included in its section at the top of the letter. This includes the sender’s name, title, company, address, and date.
You’ll also want to include the recipient’s name and address for formality.
Once everything is concluded at the end of the document, you’ll also want to include the sender’s name, job title, company name, phone number, and email address so that the recipient has all this information should they need to make contact moving forward.
The brunt of the salary verification letter will be the details about their current status with your company. Here, you’ll include bullet points containing information like:
A closing paragraph or two is also an opportunity to note that everything in the letter is contingent on the employee remaining in good standing.
The letter itself does not guarantee continued employment or salary, and all factors are subject to change at your business’s discretion at any time.
Download a salary verification letter template below in PDF or Word format:
